Google to buy stake in Xunlei

By Wang Xu (China Daily)
Updated: 2007-01-04 10:12

Google Inc, the most-used search engine, will buy a stake in Xunlei Networking Technology Co Ltd, a Chinese peer-to-peer file sharing network operator.

"We will announce the details of the deal tomorrow," said Xunlei spokesman Jackson Zhang.

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Google is reportedly partnering with Ceyuan Ventures, a Shanghai-based venture capital firm for the investment. Neither company was available for comment.

Shenzhen-based Xunlei provides a peer-to-peer file sharing network and download accelerating services. More than 80 million users have installed its download accelerating software and its websites attract more than 50 million visitors a day, the company said.

Analysts said Xunlei's huge user base could help boost Google's growth in China, where it is struggling to catch up with local competitor

A Google Inc display at a recent information technology exhibition in Beijing. [China Daily]

"Xunlei could allow Google to bundle its toolbars to Xunlei's software and websites, and thus help increase Google's users," said Tiger Hou, research director at the iResearch Consulting Group.

Google, which launched its Chinese website earlier last year, has been scrabbling for market share, and faces fierce competition from both Baidu and Yahoo.


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